A Grimsby-based fish process business has entered administration after almost two decades in business. Arctic Fish products, established in 2005, specialised in processing, packing, and storing fish for a robust customer base. However, a sudden and severe loss of turnover left the company unable to continue trading. Administrators Jamie Miller and Gareth Harris of RSM UK Restructuring Advisory LLP were appointed on December 4, 2024, to oversee the process.

The company’s financial challenges were compounded by significant bad debts from key customers, which severely impacted cash flow. According to its most recent accounts for the year ending May 31, 2024, Arctic Fish Products reported net current assets of just £25,570, a drop from £40,272 the previous year. 

Meanwhile, liabilities due within a year totaled £88,876, with total liabilities surpassing £459,000. This financial strain left directors with no choice but to seek professional advice from RSM UK. Despite their efforts, the company’s cash flow issues proved insurmountable, and operations were ceased shortly before the administrators’ appointment. All 14 employees have been made redundant.

Joint administrator Jamie Miller described the situation as unfortunate for the business and its staff, emphasizing the abrupt nature of the turnover loss. He assured efforts to support affected employees in recovering entitlements, such as unpaid salaries, holiday pay, notice pay, and redundancy compensation. RSM UK is also collaborating with directors and stakeholders to maximize returns for creditors through the sale of the company’s assets, including its trading premises and machinery. Potential buyers are encouraged to express interest promptly.

Arctic Fish Products had been a well-regarded player in the fish processing industry, but its collapse highlights the vulnerability of businesses facing bad debts and volatile market conditions. The administrators remain hopeful of securing significant recoveries for creditors, signaling an ongoing effort to mitigate the broader impact of the closure.